Realtor commission (6%, negotiations, new agent, commissions)

[mading6]

This is kind of long and I apologize.

Okay so I saw a property for sale on the Internet. I called the realty company and asked for a viewing. Agent met us and showed us property.

We liked the property so got an agent (because we did not want dual agent) and we didnt want an agent earlier because we are always looking for good deals to buy. So we got an agent (to be protected) put an offer in for us. Our buyers agreement states buyer responsible for 6% commission at closing. Also states that commission is authorized negotiable with sellers agent.

Well on the Internet listing commission stated: 2.5% split.

So we put an offer in and listing agent counter offered us stating That commission would be 75% to him/her ( listing agent, sellers agent) and 25% to our agent (buyers agent). Well our agent isn't satisfied with that and countered for a 50/50 commission split. This has been going back and forth for 1.5 months. Yes one and a half months.

We offered to throw in an extra 15k to our realtor to makeup for the 25% loss if we decide to buy after due diligence.

Our realtor then stated that his/herbroker ( who is now involved due to commission problem) will go after us (sue)for the other 25% because in our buyer agreement they said it states that we are responsible for the commission.

The listing agent said since he/she showed us the property he/she deserves the 75% instead of 50%.

This whole ordeal has disgusted me now because all the focus is on the commission so now our attorneys are doing the negotiations of the purchase agreement.

So please any comments, suggestions?

My friend told me to call the real estate commission tomorrow to get advice.

Thank you

[Rakin]

Some agents try and pull this when they show the house. In our area the rules of the MLS determine the pay and is not really negotiable.

Your offer needs to be presented to the seller and worked out. These 2 agents can argue between themselves and should not affect you or your offer on the house. If they don't stop the arguing and move forward with your offer, you should file a complaint with your states RE Commission.

It's about you and the seller, not about them. You should not have to pay the additional fees.

You might consult an attorney (or threaten too).

[MrRational]

Originally Posted by mading6

...so now our attorneys are doing the negotiations of the purchase agreement.

and what does YOUR attorney say about the commission split fiasco?

Everyone out west likes to dismiss the need for buyers to have attorneys in RE transactions.
Well, they do until the cases like this one show up. By then it's (often) too late.

I'll repeat: only the SELLER ever needs an agent... but buyers always need LAWYERS.

Most buyers are in a once every 20 year transaction involving the largest amount of money
they have ever dealt with. Have qualified independent counsel with experience in YOUR county
to advise you on the best way to proceed. Never sign anything without them.

[lemonegg]

Why are you as the buyer paying the commission? In my experience the seller pays it. Is the a Hollywood thing?

Since this is their livelihood, you cannot blame the agents for wanting to be paid. But how much effort is showing the house compared to working the deal itself thru closing? I don't see fairness in the listing agent getting 75% but I'm not an agent so I don't know the rules.

No way would I kick in more commission. But since you offered maybe they belive you are not going to walk away, leaving them with zero commission. So why should either budge? And they are not even working on the contract until they finish hammering out commission split? You really must love that house to put up with all of this.

[manderly6]

Personally I would a find a new agent and a new house. Leave all this mess behind. The last thing I would do is reward either agent with a commission.

[Rakin]

Originally Posted by MrRational

and what does YOUR attorney say about the commission split fiasco?

Everyone out west likes to dismiss the need for buyers to have attorneys in RE transactions.
Well, they do until the cases like this one show up. By then it's (often) too late.

I'll repeat: only the SELLER ever needs an agent... but buyers always need LAWYERS.

Most buyers are in a once every 20 year transaction involving the largest amount of money
they have ever dealt with. Have qualified independent counsel with experience in YOUR county
to advise you on the best way to proceed. Never sign anything without them.

Most southern & western states do real estate without attorney involvement like in the northeast. While I advised a possible attorney, it's really not needed in this situation if the OP & Seller will push the issue with the agents and threaten a complaint with the state RE Commission.

[TexasHorseLady]

I am astounded that this has gone on for a month and a half. You need to talk to the brokers (not agents) involved and let them know what's going on, and that the real estate commission in your state is about to be notified.

[MrRational]

Originally Posted by Rakin

Most southern & western states do real estate without attorney involvement like in the northeast.

I'm well aware of this pattern/preference.
My point (remains) that it doesn't serve the BUYER.

While I advised a possible attorney, it's really not needed in this situation if the OP & Seller will push the issue with the agents and threaten a complaint with the state RE Commission.

Originally Posted by TexasHorseLady

I am astounded that this has gone on for a month and a half. You need to talk to the brokers (not agents) involved and let them know what's going on, and that the real estate commission in your state is about to be notified.

Do you notice how the common theme in these sorts solutions is predicated on a rather
well informed buyer knowing what to do and how to go about it?
If that were the case they probably wouldn't have gotten into the mess in the first place.

Agents serve the SELLERS interests well. Some agents, maybe even most, can do well for buyers too.
Buyers still need lawyers... and they need them more than they need an agent.

[MikePRU]

I wouldn't waste anymore of my time and I would let both brokers (not the agents but the brokers) know I was getting in contact with the local Realtor board and also the local licensing authority.

I'm so shocked by many things in this story. Two really stand out to me:

1. That the listing agent would be such a scuzz bag. Attempting and being so insistent on what is a clear and blatant commission grab is just uncalled for. Your job (listing agent) is to get the property sold not steal commission from other agents. I understand you're disappointed that you're not going to be a dual agent in this transaction after it seemed like you would be but just move on and do your job.

2. That your own agent stated that their broker would sue you for the remainder of the commission stated in your buyer's contract. Who sues their own client or even threatens it? I imagine after that statement they lost any chance of you doing business with them in the future. Just really not a smart way to do business. It's like throwing the baby out with the bath water as they say.

This type of story seems to pop up quite often on here. My advice: if you're going to look at a property and want representation then bring your agent with you to all showings. If that was done, we wouldn't be hearing this story. Of course, the unprofessional actions of both agents have only made what is often an akward situation far worse.

[FalconheadWest]

Are both these agents REALTORS® or just licensed agents? If they are REALTORS®, it is against the code of ethics to allow this to hinder the sale between buyer and seller. They should allow the process to move forward and deal with the commissions outside of the buyer and seller transaction.

Also, the MLS is a contract between agents. If the one agent offered such and such pay, he is obligated to pay that to the buyer's agent. He can argue other things like procuring cause outside your transactions.

Ethic complaints all over the place, if they're REALTORS®.